Xerox Holdings Corp. /zigman2/quotes/201169674/composite XRX +4.81% has dropped its five-month hostile bid to acquire larger rival HP Inc. /zigman2/quotes/203461582/composite HPQ +5.43% because the COVID-19 health crisis undermined the copier maker's ability to pull off the debt-laden merger, the company said in statement Tuesday. "The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc.," a company spokesperson said in an email. The more than $30 billion tender offer was highlighted by a proxy fight to replace the printer and PC maker's board. In a statement late Tuesday, HP reiterated it has a "healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future." Shares of Xerox and HP were flat in extended trading Tuesday.